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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: sbaTexas on July 25, 2016, 10:18:32 PM

Title: Do you accept "conditional" tenants?
Post by: sbaTexas on July 25, 2016, 10:18:32 PM
I have received a few credit app/background checks back for tenants and the recommendation from the screening company has been "conditional."  What are thoughts on leasing to "conditional" tenants and what extra teeth do you apply in the lease? Bigger deposit? Higher rent? Any advice would be appreciated, thank you.
Title: Re: Do you accept "conditional" tenants?
Post by: Another Reader on July 25, 2016, 10:22:24 PM
No, unless and until all of the conditions have been cleared.
Title: Re: Do you accept "conditional" tenants?
Post by: sbaTexas on July 26, 2016, 06:34:11 AM
I guess I should clarify as to why I'm torn...what about when the "conditional" status is due to being at current job for less than 1 year or having a credit score under 600 while they pass the other categories?
Title: Re: Do you accept "conditional" tenants?
Post by: Another Reader on July 26, 2016, 07:28:15 AM
Read No-Nonsense Landlord's blog.  I do not consider tenants with sub-600 credit scores, to the frustration of the property managers.  There is a high correlation between credit scores and responsible behavior.  I look for 650 and above.  NNL manages some lower income properties and his cut off is 625.  One year on the current job is a condition I would consider if the previous employment history was strong AND the credit score was high.
Title: Re: Do you accept "conditional" tenants?
Post by: Bobberth on July 26, 2016, 09:26:04 AM
I don't look at credit scores. I look at what makes up the credit score. I've had tenants with lots of doctor bills in collections from having a baby or an accident. That doesn't reflect as poorly as somebody with 7 unpaid cell phone bills even though they may both have the same low score. Some people got screwed by the housing market and had to do a short sale or lost their house to foreclosure and took a big credit hit. I've been renting to people like that for the last 3-4 years.

The market for my rentals is generally couples/families that make between $10-$12/hour each. They job-hop a lot and can easily find another job to replace their income so job history for more than a year isn't necessary for me. I prefer to see it, but if they can show me a long time of employment and no missing time, I won't hold it against them if everything else turns out ok.
Title: Re: Do you accept "conditional" tenants?
Post by: clarkfan1979 on August 07, 2016, 10:45:14 PM
I look at the credit report, but not the score. If someone is younger they might have a lower score, but have no delinquencies.